What is the difference between a Due Date and a Statement Closing Date?

The closing date is the last day of a billing cycle, while the due date is the deadline to avoid interest charges.

There are two dates to keep track of when paying your credit cards: the statement closing date and the payment due date. Both are important for saving money, avoiding charges and keeping a healthy credit score.

Let’s look at the differences.

What is a statement closing date?

A credit card closing date, also known as a statement closing date, is typically the last day of your monthly billing cycle. Purchases made after the closing date of your credit card will be reflected on the next month’s statement.

This is also the date your credit card issuer calculates interest charges. Any purchases or charges after the date will be used to calculate the next month’s payment and interest charges.

For most credit cards, you have a grace period of 21 to 25 days between the statement closing date and the day your payment is due.

While we’re on it, did you know paying your credit card bill before its due date can lower your credit utilization ratio, a key factor in boosting your credit score? You’ll avoid late fees, too, another boon for your credit score, and when you pay your balance in full, you’ll save money on interest charges.

So, along with your statement closing date, your payment due date is mighty important, too.

The quick question generally asked: what is the “next closing date”? The next closing date is the date your credit card company will finalize your account’s billing cycle. It is the date your current billing cycle will end, and a new one will begin. Knowing the next closing date is essential for managing your credit card finances effectively. It allows you to track your spending during the current billing cycle, anticipate the statement amount, and plan to make timely payments. You can find your next closing date on your credit card statement or by checking your online account with the credit card issuer.

What is a payment due date?

A credit card payment due date is your deadline for making an on-time payment. You’ll find your payment due date on your monthly statement, balance, and minimum payment. This is the last day to make a minimum payment before incurring late fees or penalties.

It always falls on the same calendar date. For example, if your payment due date is April 25th, your next payment will be May 25th — and every 25th day of the month.

Here’s a pro tip: ask your credit card issuer to change your due date if it falls at a bad time of the month. For example, if you usually have more cash at the start of the month, consider shifting to an earlier due date. Your statement cycle will shift accordingly.

What is the payment closing date vs the due date?

“Payment due date” and “closing date” are commonly used in financial and credit card contexts. They refer to different points in time and serve distinct purposes. Let’s explore each term:

1. Closing Date
The closing date on a card refers to the specific date when a financial transaction is finalized or completed. It is commonly used in real estate transactions, such as when buying or selling a property. On the closing date, all necessary paperwork is signed, funds are transferred, and property ownership officially changes hands. For example, if you are buying a house, the closing date is when you become the legal owner of the property. It is essential to be aware of the closing date as it signifies the conclusion of the transaction, and you may need to make arrangements accordingly, such as transferring funds or scheduling movers.

Many queries arise, such as, ‘What is a closing date on a credit card?’. So, the closing date on a credit card is synonymous with the Statement Closing Date.

To summarize, the payment due date is the deadline for making a required payment to avoid penalties. In contrast, the closing date marks the completion of a financial transaction, particularly in the context of real estate. Understanding these terms and their implications is essential to manage your finances effectively and complete transactions smoothly.

2. Payment Due Date
The payment due date is the deadline by which a payment must be made to satisfy an outstanding debt or financial obligation. It is commonly associated with credit cards, loans, utility bills, and other recurring payments. For example, if you have a credit card, your monthly credit card statement will include a payment due date, which is typically around 21–25 days after the statement date. To avoid late fees and penalties, you must make at least the minimum payment required by the due date. Failing to pay by the due date could result in additional charges and negatively impact your credit score.

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What are other important credit card dates?

• The annual fee due date refers to an annual fee sometimes charged to keep a card open. The annual fee due date can vary between card issuers, but it generally corresponds to your account anniversary.
• The introductory offer date is when some special rates and offers no longer apply. Some credit cards come with introductory deals and terms, which end after a specified period. Balance transfer deals and introductory interest rates are common introductory offers, and the offer date is important to remember so you know when the terms apply to your purchases. These offers usually start when your application is approved, not when you receive your card.
• The credit card expiration date is printed on most credit cards. It’s not the date your account will be closed; it’s typically when your card expires. Most credit card issuers will mail a replacement card before expiration, and sometimes your card number will change. But not always. On receiving the new card, destroy your old card and follow the instructions to activate your new one.
• Transaction dates mark the day when a purchase or charge was made with your card. It’s different from your posting date, which is the day your purchases and charges are applied to your account, usually lagging 2 or 3 days behind the transaction date.

Bright tracks all your dates and makes smart payments for you

Bright makes card payments for you with every date in mind. Bright’s MoneyScience™, our new patented system of 34 algorithms, studies your debt, looking at APRs, balances, interest charges, and due dates, and makes smart payments for you, always on time.

It’s easier than juggling due dates and doing the math on payments month after month. Bright does all that for you while working to lower your utilization ratio and optimizing for lower interest charges.

If you don’t have it, download the Bright app from the App Store or Google Play. Connect your checking account and credit cards, set a few goals, and let Bright get to work.

Recommended Readings:

The best day of the month to pay your credit cards

4 dates to look for beyond the due date on your credit cards